Income Elasticity of Demand (YED)

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Formula: YED = %ΔQd ÷ %ΔY

YED = 1.67

Working: YED = 5 ÷ 3

Interpretation: Normal good (positive YED).

Exam tip: Remember Max and Sanjeeth at a concert — the QUEUE before you PEE: put %ΔQ before %ΔP (quantity change on top, price change on the bottom).
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